[{"id":213179,"question":"Over time the price of primary products tends to fall because.","choices":[{"text":"Demand is income elastic","value":"A"},{"text":"Supply is income elastic","value":"B"},{"text":"Of outward shifts in supply","value":"C"},{"text":"Demand is price elastic","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213178,"question":"Earning from primary products are often unstable because.","choices":[{"text":"Demand is price elastic","value":"A"},{"text":"Supply is price elastic","value":"B"},{"text":"Supply conditions are relatively stable","value":"C"},{"text":"Supply conditions are unstable","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213177,"question":"Developing economies usually","choices":[{"text":"Have large industrialized sectors","value":"A"},{"text":"Are dependent on primary products","value":"B"},{"text":"Have high levels of wealth","value":"C"},{"text":"Earn more from exports than is spent on imports","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213176,"question":"Demand for primary products is likely to be","choices":[{"text":"Very sensitive to price","value":"A"},{"text":"Price elastic","value":"B"},{"text":"Unit elastic","value":"C"},{"text":"Income inelastic","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213175,"question":"Developing economics usually have","choices":[{"text":"Low GDP per captia","value":"A"},{"text":"Low CPI","value":"B"},{"text":"Large balance of payments surpluses","value":"C"},{"text":"Large budget surpluses","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213174,"question":"Which of the following is not a way of helping developing economics.","choices":[{"text":"Aid","value":"A"},{"text":"Loans","value":"B"},{"text":"Protectionism of developed markets","value":"C"},{"text":"Training and education programmes","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213173,"question":"To prevent the external value of the currency from failing the government might","choices":[{"text":"Reduce interest rates","value":"A"},{"text":"Sell its own currency","value":"B"},{"text":"Buy its own currency with foreign reserves","value":"C"},{"text":"Increase its own spending","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213172,"question":"Tariffs.","choices":[{"text":"Decrease the domestic price of a product.","value":"A"},{"text":"Increase government earnings from tax","value":"B"},{"text":"Increase the quantity of imports","value":"C"},{"text":"Decrease domestic production","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213171,"question":"Free trade is based on the principle of","choices":[{"text":"Comparative advantage","value":"A"},{"text":"Comparative scale","value":"B"},{"text":"Economics of advantage","value":"C"},{"text":"Production possibility advantage","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213170,"question":"A demand switching policy could be.","choices":[{"text":"Higher interest rates","value":"A"},{"text":"Higher income tax","value":"B"},{"text":"Traiffs","value":"C"},{"text":"Reduced government spending","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213169,"question":"Which of the following is not an argument for protectionism.","choices":[{"text":"To protect infant industries","value":"A"},{"text":"To increase the level of imports","value":"B"},{"text":"To protect strategic industries","value":"C"},{"text":"To improve the balance of payments","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213168,"question":"A depreciation of currency occur when","choices":[{"text":"The value of the currency falls","value":"A"},{"text":"The value of the currency increases","value":"B"},{"text":"Inflation falls","value":"C"},{"text":"The balance of payments improves","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213167,"question":"If the exchange rate is above the equilibrium level.","choices":[{"text":"There is excess demand and teh exchange rate will fall","value":"A"},{"text":"There is excess supply and the exchange rate will fall","value":"B"},{"text":"There is excess demand and the exchange rate will rise","value":"C"},{"text":"There is excess supply and the exchange rate will rise","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213166,"question":"The Philips curve shows the relationship between inflation and what?","choices":[{"text":"The balance of trade","value":"A"},{"text":"The rate of growth in an economy","value":"B"},{"text":"The rate of price increases","value":"C"},{"text":"Un employment","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213165,"question":"Menu costs in relation to inflation refer to","choices":[{"text":"Costs of finding better rates of return","value":"A"},{"text":"Costs of altering price lists","value":"B"},{"text":"Costs of money increasing its value","value":"C"},{"text":"Costs of revaluing the currency","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213164,"question":"The effects of inflation on the price competitiveness of a country's products may be offset by","choices":[{"text":"An appreciation of the currency","value":"A"},{"text":"A revaluation of the currency","value":"B"},{"text":"A depreciation of the currency","value":"C"},{"text":"Lower inflation abroad","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213163,"question":"An increase in costs will","choices":[{"text":"Shift aggregate demand","value":"A"},{"text":"Shift aggregate supply","value":"B"},{"text":"Reduce the natural rate of unemployment","value":"C"},{"text":"Increases the productivity of employees","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213162,"question":"An increase in aggregate demand is more likely to lead to demand pull inflation if.","choices":[{"text":"Aggregate supply is perfectly elastic","value":"A"},{"text":"Aggregate supply is perfectly inelastic","value":"B"},{"text":"Aggregate supply is unit elastic","value":"C"},{"text":"Aggregate supply is relatively elastic","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213161,"question":"Inflation.","choices":[{"text":"Reduces the cost of living","value":"A"},{"text":"Reduces the standard of living","value":"B"},{"text":"Reduce the price of products","value":"C"},{"text":"Reduces the purchasing power of a price","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213160,"question":"Demand pull inflation may be caused by","choices":[{"text":"An increase in costs","value":"A"},{"text":"A reduction in interest rate","value":"B"},{"text":"A reduction in government spending","value":"C"},{"text":"An outward shift in aggregate supply","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213159,"question":"Open market operations occur when the government.","choices":[{"text":"Reduces the interest rate","value":"A"},{"text":"Buys and sells bonds and securities","value":"B"},{"text":"Increases taxation","value":"C"},{"text":"Increases the exchange rate","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213158,"question":"To reduce the supply of money the government could.","choices":[{"text":"Reduce interest rates","value":"A"},{"text":"Buy back government bonds","value":"B"},{"text":"Sell government bonds","value":"C"},{"text":"Encourage banks to lend","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213157,"question":"A reduction in the money supply is likely to","choices":[{"text":"Reduce interest rates","value":"A"},{"text":"Increase the interest rate","value":"B"},{"text":"Increase inflation","value":"C"},{"text":"Decrease deflation","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213156,"question":"According to the quantity theory of money an increase in the money supply is most likely to lead ot inflation if","choices":[{"text":"The velocity of circulation decreases","value":"A"},{"text":"The number of transactions decreases","value":"B"},{"text":"There is deflation","value":"C"},{"text":"The velocity of circulation and the number of transactions is constant","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213155,"question":"A fall in interest rates is likely to","choices":[{"text":"Increase aggregate demand","value":"A"},{"text":"Increase savings","value":"B"},{"text":"Decrease consumption","value":"C"},{"text":"Decrease exports","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213154,"question":"The liquidity trap occurs when the demand for money","choices":[{"text":"Is perfectly interest elastic","value":"A"},{"text":"Is perfectly interest inelastic","value":"B"},{"text":"Means that an increase in money supply leads to a fall int he interest rate","value":"C"},{"text":"Means that an increase in the money supply leads to an increase in the interest rate","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213153,"question":"The precautionary demand for money is","choices":[{"text":"An idle balance","value":"A"},{"text":"An active balance","value":"B"},{"text":"Directly related to interest rates","value":"C"},{"text":"Inversely related to income","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213152,"question":"To reduce cyclical unemployment the government might.","choices":[{"text":"Increase the budget surplus","value":"A"},{"text":"Increase the balance of payments deficit","value":"B"},{"text":"Reduce interest rates","value":"C"},{"text":"Reduce government expenditure","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213151,"question":"Less demand in the economy may increase unemployment this may lead to less spending which may reduce demand further This is called.","choices":[{"text":"The upward accelerator","value":"A"},{"text":"The downward multiplier","value":"B"},{"text":"The upward PPF","value":"C"},{"text":"The downward MPC","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213150,"question":"Which of the following is not a supply side measure.","choices":[{"text":"Increased training","value":"A"},{"text":"Providing more information","value":"B"},{"text":"Helping individuals to move location to find work","value":"C"},{"text":"Increasing spending on existing industries.","value":"D"},{"value":"E"}],"correctAnswer":4}]